Market Signals For The US Stock Market And Indian Stock Market - Monday, Sept. 16


The S&P 5000 and the Nifty rallied last week. Indicators are bullish for the upcoming week. QE forever from the FED is about to trigger the deflationary collapse of the century and we have likely made another major top in global equity markets and are failing at resistance.

The market has established a major top with non-conformations from the transports, other global indices and commodities and a massive drop in the S&P 500 looks imminent. I don’t buy into the reflation trade for a minute.

The trend is about to change from bullish to bearish and the markets are about to get smashed by a strong dollar. Looking for significant underperformance in the Nifty going forward on rapidly deteriorating macros.

5-year deflationary wave is about to start in key asset classes like the Euro, stocks, and commodities amidst a number of bearish divergences and Hindenburg omens. We are on the verge of a multi-year great depression. The markets are still trading well over 3 standard deviations above their long-term averages from which corrections usually result. Tail risk has been very high-off late as the yield curve inverts.

The critical levels to watch for the week are 3020 (up) and 2995 (down) on the S&P 500 and 11150 (up) and 11000 (down) on the Nifty. A significant breach of the above levels could trigger the next big move in the above markets. 

Disclaimer: The views expressed here are my own and must not be taken as advice to buy or sell securities.

How did you like this article? Let us know so we can better customize your reading experience. Users' ratings are only visible to themselves.


Leave a comment to automatically be entered into our contest to win a free Echo Show.